Amprion lands €6.5B green credit line to power Germany's energy transition

What's the deal? German grid operator Amprion has closed a €6.5 billion syndicated credit facility backed by 15 banks, more than doubling its previous €3.2 billion loan.

The Dortmund-based company refinanced its existing facility early and dubbed the new line the "Energiewende Green Revolving Credit Facility." BNP ParibasDealroom has a profile for this one. Try Dealroom →, INGDealroom has a profile for this one. Try Dealroom →, and UniCredit acted as coordinators.

Why now? Amprion is ramping up investment in its 11,000km high-voltage network, which carries electricity for 29 million people from the North Sea to the Alps.

The larger credit line strengthens its financing base as investment volumes climb. The deal runs for five years, with two one-year extension options and a €2 billion increase option.

What could go wrong? Amprion calls the facility the first of its kind under a "Green Pure Play" concept, meaning more than 90% of its revenue must stay compliant with EU taxonomy rules to keep the status.

Unlike typical green loans, it does not need to prove the money funds specific green projects. Slipping below that threshold could put the green label at risk.

The signal: By drawing in global lenders such as Bank of AmericaDealroom has a profile for this one. Try Dealroom →, Goldman SachsDealroom has a profile for this one. Try Dealroom →, and BNP ParibasDealroom has a profile for this one. Try Dealroom → alongside its longstanding German partners, Amprion has internationalised its core banking circle, a sign that capital markets are increasingly willing to underwrite grid infrastructure tied to Europe's energy transition. The "Green Pure Play" structure, which judges the entire company against EU taxonomy rules rather than tracking individual projects, points to a maturing model for financing utilities whose core business is already aligned with climate goals.

Read more: Aktiencheck

Image credit: kimbareimer